Busan BDX Consortium named preferred bidder for Digital Asset Exchange

Terraform Labs Accuses Citadel Securities of Stablecoin SabotageTerraform Labs, the bankrupt Singaporean blockchain firm, is pointing fingers at American market maker Citadel Securities, alleging that it played a role in an orchestrated effort to destabilize Terraform’s TerraUSD (UST) stablecoin back in May 2022.In its pursuit of justice, Terraform Labs has now called upon the United States District Court in the Southern District of Florida to compel Citadel Securities to furnish vital documents concerning their trading activities during that critical period, when the stablecoin underwent a depegging crisis, now referred to as TerraUSD Classic (USTC).Photo by Tingey Injury Law Firm on UnsplashAllegations of intentional destabilizationThat’s according to a motion filed by Terraform in the United States District Court in the Southern District of Florida, earlier this week. As alleged by Terraform Labs, the catastrophic depegging event in May 2022, which saw UST plummet from $1 to a mere $0.02, was not solely due to inherent instability in the algorithm supporting the UST stablecoin. Instead, the firm contends that it was a result of the deliberate and collaborative actions of specific third-party market participants who engaged in “shorting” to trigger the depegging.Terraform stated in its motion:“Movant [Terraform] contends that the market destabilization that occurred did not result from instability in the algorithm underlying the UST stablecoin. Instead, Movant contends that the market was destabilized due to the concerted, intentional effort of certain third party market participants to ‘short’ and cause UST to depeg from its one dollar price.”The motion also alludes to “publicly available evidence” hinting at Citadel’s intention to short the stablecoin at the time of the depegging event. In particular, it references a Discord channel chat screenshot where a pseudonymous trader purportedly had a conversation with Citadel head Ken Griffin. Griffin allegedly remarked:“They were going to Soros the f*** out of Luna UST,” seemingly drawing a connection to George Soros’ trading strategies, which often involve highly leveraged, one-way bets.Citadel refuted allegations previouslyNotably, Citadel Securities has previously refuted allegations of trading the TerraUSD stablecoin in May 2022, according to Forbes.In its motion, Terraform refers to the importance of these documents for its defense in a lawsuit filed by the US Securities and Exchange Commission (SEC) in February. The SEC lawsuit alleges that Terraform Labs and its founder, Do Kwon, played a significant role in orchestrating a multi-billion dollar cryptocurrency securities fraud.The motion concludes with Terraform arguing that its defense would be substantially hampered if Citadel Securities were to successfully withhold the requested information. In the event that the court fails to compel Citadel, Terraform has requested that the matter be transferred to the US District Court for the Southern District of New York.The matter has been the subject of debate within the crypto community in recent months. In May a community member stated:“As I’ve been saying. People blamed Citadel et al. This was nothing but a rug pull. Wake up. Do Kwon says the dissolving of Terraform Labs in Korea days before the $LUNA and $UST crash is ‘purely coincidental.’”With the matter now being raised in the courts, it looks like the legal system will be the final adjudicator regarding the issue.

Hong Kong’s SFC Issues Warning Against Unlicensed Crypto PlatformsIn a move to safeguard its financial ecosystem, the Hong Kong Securities and Futures Commission (SFC) issued a stern warning recently, cautioning against the activities of unlicensed cryptocurrency exchanges involved in what it termed “improper practices.”In a statement published to its website on Monday, the regulatory authority underscored the gravity of engaging in unlicensed operations within the crypto trading sphere, categorizing such activities as a “criminal offense” under Hong Kong jurisdiction.Photo by Chi Hung Wong on UnsplashDeceptive tacticsFurthermore, the SFC exposed the deceptive tactics employed by certain unlicensed crypto trading platforms, which misleadingly assert that they have submitted license applications to the commission. The reality, however, is quite the opposite, as these platforms remain unregulated.The warning coincides with the SFC's ongoing establishment of a novel regulatory framework for overseeing retail crypto trading. Notably, the SFC made it clear that applicants who fail to adhere to pertinent regulations might find themselves ineligible for licensing under the newly instituted regime.This initiative from the SFC aligns with the broader efforts undertaken by Hong Kong authorities to instill effective oversight and regulation within the cryptocurrency market. The primary objective remains the protection of investors’ interests and the preservation of the integrity of the overall financial system.Platforms must demonstrate ability to complyThe SFC emphasized, “VATPs (Virtual Asset Trading Platforms) which consider themselves eligible for deeming under the transitional arrangements are reminded that the SFC may decide that deeming is inapplicable if it does not see a reasonable prospect for the VATPs to successfully show that they are capable of complying with the applicable legal and regulatory requirements.”This development follows closely on the heels of Hong Kong’s recent announcement outlining plans to grant licensed cryptocurrency platforms the permission to cater to retail investors within the new regulatory framework.These comprehensive guidelines encompass critical facets such as cybersecurity protocols, asset custody safety standards, and the segregation of client assets. This regulatory evolution commenced on June 1, synchronizing with the launch of the novel licensing regime for virtual asset platforms.Drawing attention to the growing influence of the sector, it’s worth noting that in April, cryptocurrency exchange OKX registered an astonishing surge of over 10,000 new user sign-ups within a mere month of launching its operations in Hong Kong.Web3 implementationIn a recent tweet, Chris Lee, former CEO of both the Huobi and OKX crypto exchanges, said that “if Hong Kong wants to implement Web3 well, it still needs to complete the basic requirements, such as Web3 foundation laws and bills.” Lee added that “Hong Kong’s competitors will always be itself, not New York or Singapore.”The Hong Kong SFC’s warning to unlicensed crypto platforms is another step in creating the right foundation for Web3 in the city. It underscores the concerted effort to maintain a regulated and secure environment for cryptocurrency transactions within the Chinese autonomous territory.As the regulatory landscape continues to evolve, industry participants are gradually being compelled to adhere to the stipulated legal and compliance requirements in an effort to foster a robust crypto ecosystem.

The Securities and Exchange Commission (SEC) of Thailand has initiated legal proceedings against Akarlap Yimwilai, the former director and CEO of Zipmex Thailand. Failure to disclose vital informationThe Commission set out its allegations against Yimwilai in a statement published to its website on Thursday. The allegations revolve around Yimwilai's purported failure to disclose vital information during his tenure, resulting in financial losses for Zipmex customers. According to the SEC's investigation, Yimwilai allegedly transferred cryptocurrency from Zipmex Thailand's wallets to overseas digital wallets without prior disclosure to customers.Photo by Olivier Darny on Pexels Unauthorized digital asset movementsThe SEC's findings indicate that customer assets held in Zipmex Thailand's Z Wallet were moved into overseas digital wallets before any official announcement regarding changes in terms and conditions. This conduct, the regulator asserts, contradicts the information provided by Zipmex Thailand, constituting fraudulent misrepresentation. Yimwilai served as CEO of Zipmex Thailand from August 2018 to November 2023, as per his LinkedIn profile. This deceptive action misled users regarding the security of their assets, the SEC claims, prompting the Commission to charge him with violating Section 82 of the Digital Asset Business Operation Act B.E. 2561. The SEC's accusations extend to Zipmex Thailand's submission of inaccurate reports on customer assets and violations of regulatory requirements. The regulator contends that the reports submitted by Zipmex Thailand were inconsistent with independently verified information. Inviting further legal actionIn response to these allegations, the SEC has forwarded charges against Yimwilai to the Office of the Public Prosecutor (OPP) for further legal proceedings. The SEC has also filed a formal complaint against Yimwilai with the Office of the Provincial Crime Suppression Division, indicating a pursuit of additional legal action. The determination or otherwise of legal liability will be a pivotal step in this process, emphasized by the SEC. Zipmex Thailand, a subsidiary of Singapore-based Zipmex under the leadership of Marcus Lim, obtained approval to operate from the Ministry of Finance and SEC in 2020. The company reportedly came under scrutiny from financial regulators over its acquisition by V Ventures in 2023.  V Ventures backed out of the $100 million buyout of the company last year, which would have included the return of customer deposits. It claimed that Zipmex had not lived up to the terms of the buyout contract.On Feb. 2, the Thai SEC directed Zipmex to temporarily suspend its digital asset trading and brokerage services, granting the firm a 15-day period to adhere to regulatory guidelines. Earlier reports had highlighted Zipmex's application for court protection amidst a wave of bankruptcies among crypto lenders. In November 2023, Zipmex proposed a restructuring plan to reimburse creditors at $0.30 on the dollar, encountering resistance from key stakeholders. The initial offer stood at three cents on the dollar, with the potential to increase to 30 cents in the event of optimized capital recovery.